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RAVISHANKAR, SUNITA C. BAGEWADI
Branch Manager, State Bank of India – Appellant
Versus
Harish Gudigar – Respondent
ORDER
Sunita C. Bagewadi, Member—This appeal is filed by the Appellant/Opposite Party being aggrieved by the order dated 14.7.2021 passed by the District Consumer Commission, Udupi in CC.No.08/2020 and prays to set aside the order and to allow the appeal in the interest of justice and equity.
2. The brief facts of the complaint is that, the complainant submits that he was a SB account holder with the State Bank of India at Malleshwaram Branch in Bengaluru. In the month of February, 2019, he had requested the branch to transfer his SB savings and all FDs held in his name to SBI branch at Santhekatte in Udupi as he was moving to Udupi to start his own business. Accordingly the Malleshwaram Branch of SBI had transferred the SB savings and all FDs to the SBI Santhekatte branch, Udupi. On 23.8.2019 at 8.19 a.m. the complainant received message on his mobile “Thx for INB txn of Rs.500000.00 from A/c X8985 to Parnav Onl....Ref#IGAGVTYJC8 on 23rd Aug.19 and on the same day another same SMS at 8.49 a.m. received to the complainant “Thx for INB txn of Rs.50010/- from A/c X8985 to Parnav Onl..... Ref#IGAGVU-AEC3”. If not done forward these SMS to 9223008333 to block INB or call 1800111109". A
It is responsibility of Bank to compensate its customers in cases of fraudulent withdrawals.
The court affirmed that customers have zero liability for unauthorized transactions if reported within three working days, as per RBI guidelines, and found the bank liable for failing to secure the a....
Banks must prove customer negligence to deny liability for unauthorized transactions; mere downloading of an app does not constitute negligence.
“Since the Bank after following the due procedure, transferred the fund through net banking, any deficiency in service on part of Bank ruled out.”
The court ruled that consumer commissions lack jurisdiction over disputes involving fraudulent transactions, emphasizing that responsibility for account security lies with the customer.
Bank is bound to send SMS to customers regarding ATM transactions.
The court established that under the RBI Circular, customers are entitled to zero liability for unauthorized transactions if reported within three working days, and limited liability if reported with....
Banks must ensure robust security measures to protect customers from cyber fraud, and failure to do so may result in liability for unauthorized transactions.
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